Kadant's stable ROCE and reinvestment of capital at good rates have led to strong stock performance. These consistent returns could offer long-term rewards to shareholders if sustained.

The market's opinion of Kadant has improved over the past five years, likely due to consistent growth. The recent TSR improvement suggests business progress. However, significant insider buys could further boost Kadant's image.

Kadant CEO views acquisition as a strategic expansion, bolstering the company's position in wood processing industries. He expects to expand Key Knife's brand into new markets via Kadant's global sales network.

Despite Kadant's dismal earnings outlook and slower market growth, its high P/E ratio suggests investors seek a business turnaround. However, analysts appear less optimistic, indicating the high P/E ratio may be unjustified and stock prices could fall if conditions don't significantly improve.

The large-scale insider selling of Kadant shares recently and the non-existent purchase activity last year treads on cautionary grounds. Despite a notable fraction of Kadant shares being owned by insiders, their sales activities should be eyed cautiously when contemplating to buy.